Blog

  • In (Partial) Defense of Obama's Spending Cut Gimmick

    President Obama has asked Congress to give him the authority to pare down spending packages and toss them back to Congress for a quick up or down vote. This would let the president burnish his frugal bona fides and give the White House some ammunition when Republicans accuse them of Big Government.

    It is a small step toward thrift, but don’t expect hosannas from the deficit birds on either side of the aisle. Conservatives are chuckling at the idea that a soft edit of the budget will significantly rein in spending. They’re right, it won’t. Liberals will no doubt kvetch that with consumer spending weak and unemployment high, it isn’t the time to reduce spending. They’re right, it’s not.

    At the risk of sounding like the platonic ideal of a TNR column, both sides are right for the wrong reasons. The president has spoken out against the deficit, as if it’s a real enemy (he knows it’s not). He also knows that 2010’s deficit will almost certainly surpass a key emotional threshold for Americans of one trillion dollars. As a result, he has no choice but to fill his deficit-fighting arsenal with water guns and Nerf arrows designed to (1) look like real weapons and (2) not rein in the deficit.

    If passed, the proposal might eliminate some dumb earmarks and retain the vast majority of spending approved by Congress. On the whole, that’s a good thing. It’s hard to find folks stepping up to praise an admittedly gimmicky and probably inconsequential face-saving gesture by the administration. But having acknowledged that it’s admittedly gimmicky, probably inconsequential, and face-saving, I don’t mind it, for precisely that reason. Ideally, the admin would get its nice optics, and states would get their stabilization funds. This year’s deficit should still be higher, and this act wouldn’t stop that.





    Email this Article
    Add to digg
    Add to Reddit
    Add to Twitter
    Add to del.icio.us
    Add to StumbleUpon
    Add to Facebook



  • The Continental: Nissan Leaf Details, Alfa Shows the Past, Porsche Talks About the Future

    Each week, our German correspondent slices and dices the latest rumblings, news, and quick-hit driving impressions from the other side of the pond. His byline may say Jens Meiners, but we simply call him . . . the Continental.

    This Monday, we flew to London to learn a little more about Nissan’s big bet, the Leaf, which is designed to spearhead the switch to electric cars. The compact four-door has 120 hp, is governed at 90 mph, and can supposedly go 100 miles on a charge. The Leaf will cost about as much as a Toyota Prius or a lavishly equipped VW Golf 1.6 TDI. It shares components with Nissan’s B-platform vehicles, such as the upcoming Juke. Pierre Loing, Nissan Europe’s VP for strategy, tells us that the batteries will last for a long time—retaining 80 percent of their capacity after five years and 70 percent after ten. Commonality with Renault’s electric cars, such as the only slightly bigger Fluence sedan, is not impressive; both companies work on their own cars, and Nissan takes some pride in the fact that its Leaf is a dedicated EV, while the Fluence is just an electrified conventional vehicle.

    Nissan’s sub-€30K price is made possible only by various government subsidies, with a scope that is somewhat surprising given Europe’s current economic woes. When will governments start taxing electric vehicles like conventional cars, and what happens to the Leaf then? Nissan didn’t have an answer to that one.

    1930 Alfa Romeo 6C 1750 Gran Sport

    While Nissan talked about the Leaf this week, Alfa Romeo invited a few journos to the Balocco, Italy, proving grounds for a drive of some of the most awesome racers from the company’s 100-year history. Most impressive: the 1930 6C 1750 Gran Sport, the 1952 Disco Volante C52 1900, and the 1965 TZ2. In the distance, there were camouflaged Chryslers and Jeeps all over the proving grounds. Remember how we weren’t impressed with the “Chrysler” Delta that was trotted out at the most recent North American auto shows? Rebadging whimsical Italian cars won’t be enough for the U.S., and we hear the memo has been received by Fiat’s management.

    Toyota Auris HSD

    Toyota is launching the hybrid version of its Auris, which is basically a European Corolla. The Auris HSD is a five-door hatchback that uses the Prius’s hybrid drivetrain. Not particularly blessed in the looks department, the Auris blends right into traffic, and your neighbors will never know just how much you care about the planet. On paper, the Auris HSD is extremely efficient; in real life, it will be interesting to see how well it stacks up against the same car with Toyota’s own diesel, which is a powerful and competent engine that puts the Auris ahead of many competitors. The Auris HSD is about €2500 cheaper than the Prius—apparently that’s the price of bragging rights. But just think of all the solar panels this money could buy.

    This €2500 premium won’t be enough to bridge the gap between the utterly satisfying Porsche Panamera V-6 and the upcoming hybrid version, which will use the same system that is used in the Cayenne and the VW Touareg. It consists of Audi’s supercharged 3.0-liter V-6, an electric motor, and a heavy pack of batteries. Forgive us if we think the regular V-6 will be at least as much fun as the hybrid, despite the latter’s 80 or so more horsepower. Porsche is considering a diesel-powered Panamera for Europe, and the most likely engine to be offered is Audi’s 3.0-liter V-6 TDI of A8, Q7, and Cayenne fame. It’s a powerful enough engine, and while it doesn’t ooze racing heritage, it will help potential buyers to get their Panamera past the corporate bean counters.

    Porsche is not forgetting about its traditional buyers either. We would not at all be surprised to see a Panamera Turbo S, which would make at least 550 hp. If you are set on a Turbo, there is no reason to hold off, but a Turbo S would be sure to give Porsche’s four-door sedan a mid-term boost down the road.

    Porsche engineers are convinced that the upcoming, fantastic 918 Spyder needs to be able to drive electrically. We are told that 918 buyers will want to drive short distances on batteries alone, and they will want to tell their neighbors about their responsible choice. For this, they will gladly take a weight penalty of several hundred pounds. Really? We think most 918s will be driven right into their owners’ collections, while others will be taken to the track for serious action. Driving to Starbucks on batteries would not have been on our list of priorities, but it shows you just how much effort and funds electric mobility has hijacked in corporate R&D centers even now.

    Autobahn Tested

    Having spent more time at airports than behind the wheel—such is the life of the Continental at times—we can only report on the frugal Renault Clio Grandtour Diesel this time around. This Le Car successor has an 85-hp, 1.5-liter turbo-diesel, and what you feel is not 85 hp, but 162 lb-ft of torque. Keeping up with bigger boys doesn’t require much effort, and while we were underwhelmed by the style of this strictly economical device, we were glad to have it as a reliable partner for the week.

    Related posts:

    1. Nissan Leaf Pricing Clarified (Somewhat)
    2. Nissan Leaf Priced at $32,780—Or Less
    3. 2011 Nissan Leaf – Feature
  • AppMakr adds features, now free for a limited time

    We covered AppMakr a few months ago and found that they were a fairly cool way to make simple iPhone/iPad/iPod Touch apps with a minimum of fuss. They’ve just announced that they hit 1 million downloads onall of their custom apps and have also announced a number of improvements to the service.

    The service, to recap, allows you create simple apps consisting of RSS feeds and other pieces of data. You create the app online and “publish” it either privately or with their help.

    AppMakr has served as the app development tool for iPhone Apps built by Newsweek, US Congressional Committees, MacLife, National Geographic, Harvard Business Review, Seth Godin, Guy Kawasaki and thousands of others. AppMakr is an app-building service, which allows companies and individuals to make native mobile apps. The service is entirely web-based and lets users see a preview of the app as a fully-compiled, native iPhone app before it’s built.

    The company just launched a number of improvements including an “App Quality Index” which allows you to squeak through the Apple approval process as well as push notifications and photo galleries.

    You can create your app right here and publish it yourself. You’ll need to create an Apple Developer Account, but AppMakr will take care of most of the details. This offer is apparently for a limited time – they’re not announcing an end date – but, generally, it may be worth giving it a go if you’ve been thinking of creating a basic app.


  • Lame: The iPad is banned at Yankee Stadium

    Bad news, Yankees fans. Apparently the winningest team in the history of sport doesn’t want you sitting inside the stadium with an iPad on your lap. That’s right: the iPad is banned at Yankee Stadium! So says a poster on one of the IGN messageboards. The Bronx is burning.

    The deal is that the poster attempted to walk into the stadium a few days ago, only to find the security guy saying, “Sorry, you can’t take that in here.” The poster was completely refused entry.

    No worry: the poster went over to another entrance, slipping the iPad inside her jacket. She was then able to enjoy the game just fine.

    The iPad ban is part of the stadium’s “no laptop” policy. I don’t know if you can argue with the security guard at the gate the nuance, the difference, if you will, between an iPad and a laptop.

    This, of course, leaves the question: why do you need to bring the iPad to a baseball game? Shouldn’t you be watching the game? Oh: maybe you want to check out the MLB App while there. That I can understand.

    But still, you’re asking for trouble. Just leave your magical and revolutionary device at home for the day. Problem solved!


  • Twitter, Twitter, Little Star (Chart) [Infographics]

    Cosmic 140 is the star chart of the Twitter universe, its 140 most influential people. At its center, Evan Williams and Jack Dorsey. In the outer systems, much less important people, like Bill Gates, Tim Berners-Lee, and Conan O’Brien. More »







  • Amusing: Renault pressured to change name of Zoe EV by woman named Zoe Renault

    Filed under: , , , , , ,

    Renault Zoe Z.E. concept – Click above for high-res image gallery

    Any marketing person will tell you that coming up with the right name is one of the most difficult aspects of launching a new product. Big companies will spend millions of dollars researching names to make sure that they aren’t already trademarked or have strange or offensive meanings in other countries.

    Renault, however, has a slightly different problem with the name of one its upcoming electric vehicles. The Zoe Z.E. is a compact, urban commuter due to be launched in 2012. Renault is not an uncommon name in France, wit its namesake, Louis Renault having begun building cars in the late 19th century. Unfortunately for a certain Parisian woman, having both her first and last names associated with a new car is apparently just too much. Thus, according to Autocar, Zoe Renault is threatening to sue Automaker Renault unless it changes the name of its forthcoming EV.

    While we can certainly sympathize with Ms. Renault, her complaint here seems to be a bit of a stretch. The automaker apparently chose the name Zoe because it means “life” in Greek. Unless automakers start using nothing but made up or alphanumeric names, there is bound to be someone, somewhere that will have an issue with just about every name. It’s time to get over it.

    [Source: Autocar]

    Amusing: Renault pressured to change name of Zoe EV by woman named Zoe Renault originally appeared on Autoblog on Mon, 24 May 2010 15:57:00 EST. Please see our terms for use of feeds.

    Permalink | Email this | Comments

  • Get Your Complaints Solved With One Simple Question

    It’s like “The Secret” for CSRs: by asking reps reps this one question, you can get many of your customer issues resolved faster and go on to live a life with less stress and more laughter.

    NYT’s “The Haggler” polled his readers for their best customer service hacks. One that captured my eye with its grace and sophistication was the asking of the simple question, “What would you do if you were in my situation?” Apparently, this polite query often results in the customer service rep providing a really good tip that gets the customer on their way to getting real results.

    Brilliant! Streamlined and sophisticated, and it defuses the potentially adversarial relationship. I love it.

    A Guide to Complaints That Get Results [NYT via Lifehacker]

  • Egypt hides more ancient tombs

    Another discovery gives archaeologists clues to Egypt’s glorious and religious past.

    South of Cairo in Lahoun, Faoum, 57 ancient Egyptian tombs were found, reveals Egypt’s Supreme Council of Antiquities. Fifty-three stone tombs were excavated last year. Some of the oldest tombs originated from the first and second dynasties in Egypt, around 2750 B.C., whereas others came from the 18th dynasty. Decorative markings of ancient deities called Horus, Hathor, Khnum, and Amun were found in 31 tombs dating back 030-1840 B.C. One of the oldest tombs remains intact with what is called a wooden sarcophagus – an elaborately decorated coffin – and inside is a preserved mummy wrapped in linen cloth and adorned with religious inscriptions. These texts found in the Book of the Dead, it is believed, make the dead pass through the underworld. Distinguished people, like the pharaohs, are usually mummified.

    Contributing archaeologists are Zahi Hawass and Abdel Rahman El-Ayadi, archaeological mission head.

    Related posts:

    1. Noah’s Ark Found – Evidence and Facts
    2. Police Chief’s dead body found in North Mexico
    3. George Whitefield, a Forgotten Founder in America

  • MEMC Ready To Pay $76M for Silicon Wafer Maker Solaicx

    MEMC Electronic Materials has agreed to buy Solaicx, a  Santa Clara, Calif.-based maker of silicon wafers for photovoltaic panels for $66 million. MEMC could pay an aditional $10 million if Solaicx gets additional investments from current shareholders.

    MEMC owns solar power plant developer SunEdison.

    Solaicx has raised over $50 million in VC funding from D.E. Shaw, Applied Ventures, Big Sky Ventures, Firsthand Capital Management, Labrador Ventures and Greenhouse Capital Partners, according to PeHUB.

    The monocrystalline wafers developed by Solaicx  can capture more sun energy over a smaller area and produce more electricity.

    Commenting on the acquisition Ken Hannah, president of MEMC Solar Materials, said:

    Solaicx’s innovative and advanced manufacturing technology should enable us to reduce costs and improve efficiency, while enhancing our ability to drive the solar industry toward grid parity.

    The acquisition is expected to close by the end of June 2010. Solaicx has approximately 80 employees and a large-scale production facility in Portland, Oregon.

  • TED Spread Blows Past 36, And Pretty Soon Tim Geithner Will Start Getting Nervous

    The closely-watched Ted Spread, a measure of banking health, widened further today. It’s been a long time since we’ve seen it narrow.

    chart

    At these levels, we’re still in “safe” territory, but there’s reason to be nervous regardless.

    Remember, the LIBOR is derived by subtracting 3-month LIBOR from risk-free, and the rise of LIBOR creates its own complications.

    Remember, banks have been making a lot of money borrowing cheap and buying Treasuries.

    But if funding costs go up, that trade doesn’t work so well.

    As David Goldman notes:

    Only 23 basis points of daylight separate LIBOR (at 51 bps) from 2-year Treasury notes (at 74 bps). Banks are financing roughly two-thirds of the Treasury deficit, and foreign banks are doing most of that

    European banks have massive unrealized losses in government debt markets, and the interbank market freeze is likely to worsen. Whether LIBOR hits the 1.5% level projected by Citibank is beside the point. It only has to creep up to 75 bps for the 2-year-note to get clobbered.

    Join the conversation about this story »

  • Should Dolphins and Whales Have “Human Rights”? | Discoblog

    From the heroic Flipper to the charismatic Willy, dolphins and whales have made some splashy supporting actors. And since they often seem almost as smart and interesting as their human costars, perhaps it’s not surprising that a new movement is afoot to grant these animals “human rights.” Research on everything from whale communication to “trans-species psychology” hints that the glowing portrayals of these fictional animal friends have some basis in reality. If cetaceans—marine mammals including whales, dolphins, and porpoises—can act like humans, even using tools and recognizing themselves in a mirror, shouldn’t they have the same basic rights as people? That’s what attendees of a meeting organized by the Whale and Dolphin Conservation Society (WDCS) said yesterday, where a multidisciplinary panel agreed on a “Declaration of Rights for Cetaceans: Whales and Dolphins.” “We affirm that all cetaceans as persons have the right to life, liberty and well being,” says the Declaration, meant in part to stop current whaling practices. Thomas White, director of the Center for Ethics and Business at Loyola Marymount University in California, told Reuters:
    “Whaling is ethically unacceptable…. They have a sense of self that we used to think that only human beings have.”
    This declaration conflicts with ongoing negotiations within the International Whaling …


  • Mercedes-Benz C-Class coupe, convertible variants on the way, will help boost sales

    2010 Mercedes-Benz C-Class

    It seems like the compact segment is becoming more and more lucrative for automakers. Mercedes-Benz USA CEO Ernst Lieb says that a new family of compact vehicles and fuel-efficient drivetrains of its C-Class sedan are expected to drive a 30 percent sales jump within the next 5-years.

    “The potential is there,” said Lieb. “Even if the market doesn’t grow by a huge rate and stays at 13 or 14 million, the majority of these buyers will be in that lower segment.”

    The German automaker plans on kicking of its compact segment lineup in 2013 with the next-generation B-Class. Three vehicles will be based on the model including a coupe, crossover and sedan.

    Click here to get prices on the 2010 Mercedes-Benz C-Class.

    The redesigned C-Class will see a coupe variant later this year and Lieb says Mercedes-Benz will also add a convertible version. That will give Mercedes-Benz the ability to compete with the BMW 3-Series sedan, coupe and convertible. Lieb said Mercedes will have “an opportunity to meet our competitors at their own game.”

    The next-generation C-Class will also be available with 4-cylinder engines. Honestly, we could care less about 4-cylinder versions and would love to see a C 63 AMG coupe.

    – By: Omar Rana

    Source: Automotive News (Subscription Required)


  • Brittany Murphy Not Losing Any Sleep Over Death Of Simon Monjack

    Simon Monjack, the husband of late actress Brittany Murphy, was found dead in his home in Hollywood Hills on Sunday night, and the Clueless star’s brother has some harsh words for the deceased screenwriter.

    Tony Bertolotti — Brittany’s half-brother — tells RadarOnline.com that he was “not shocked” or saddened to learn of Simon’s passing.

    “I wasn’t shocked to be honest. Monjack had all his wagons circled and he couldn’t do it any longer. I didn’t have a reaction to the news. The guy was insane he tried to keep my father’s name off (Murphy’s) the death certificate,” Bertolotti spat. “When I told my dad Angelo about the news he felt he same way. We are sad for my sister, not for him.”

    “That’s two out of three people that have died living in that house within six months. When are people going to open their eyes about what was going on there?” he added. “Our family thinks that this thing will still blow-up, and that the truth will eventually come-out about our sister.”

    Monjack, 39, was found by Murphy’s mother Sharon in the master bedroom of the house he once shared with his late wife — the same house she died in last December. The cause of death is being investigated, but the Los Angeles Coroner’s Office believes Monjack died of natural causes.

    Months before his death, Simon Monjack’s mother revealed he was having health problems. In January, Linda Monjack told PEOPLE Magazine that her son was “unwell” and may have heart problems.

    “On whether he has a heart problem it is not really for me to say, you must ask him, but yes, there have been health problems in the past. I believe it’s common knowledge, and it’s been in the press that he had a slight heart attack a week from Brittany’s death coming back from Puerto Rico….”

    Murphy, 32, succumbed to pneumonia, drug intoxication, and iron deficiency last Dec. 20.


  • Justin Bieber wants to be Jacob of Twilight

    “He wants (to have) ripped abs, bulging biceps, and cut thighs.”

    They are characteristics close to the man-before-werewolf look of Jacob in Twilight. But they can speak of Taylor Lautner, the real guy who, in his desire to stay, got his muscles and abs done with much discipline. Jordan Yuam is the one responsible for Lautner’s physique.

    And the same guy whom teen popstar Justin Bieber reportedly hired. Bieber is the one who wants to have ripped abs, bulging biceps, and cut thighs, shares Music SpreadIt, but the popstar has denied the rumors.

    It adds that Bieber was impressed with Lautner’s transformation and he wants the same change in him. “Justin’s positive he has the intensity and focus to get the same results as Taylor. He’s already a megastar at 16 – now he wants the physique to go with it,” quotes Music SpreadIt. If there is a grain of truth in this, Bieber is said to do work-outs with the trainer on line – iChat or Skype. No fast foods and more protein. He is into boxing, jogging, and weight lifting, with lots of protein shakes, Zap2it adds.

    Related posts:

    1. Justin Bieber Gets Kissed by Katy Perry!
    2. Bieber Fever
    3. Teen Super Star, Justin Bieber, To Perform At 2010 MuchMusic Video Awards

  • The BlackBerry 9800 Slider gets caught on video yet again, this time with AT&T branding

    The BlackBerry 9800 Slider.. leaked? Preposterous! I can’t imagine such a thing happening. Except for that one time. Or that other time. Or any of those other times.

    And now, the leak to end all 9800 slider leaks: a video walk through of the handset, including BlackBerry OS 6.0.

    Along with showing off a bunch of the tricks OS 6.0 has up its sleeve — multitouch support, the new WebKit, a brand new homescreen — it also pretty much cements one bit right off the bat: it’s coming to AT&T, as shown by the handset startup animation.

    [Source: BerryFix Via: CrackBerry]


  • Keeping Lost Planet 2 for 6 months deserves a trophy/achievement

    Publishers have been trying to find different ways to combat used game sales that hurt their numbers, and it seems that Capcom is trying one out with Lost Planet 2.

  • HDTV Lies Exposed By Industry Expert

    The next time you go shopping for a new HDTV, keep in mind that the brightness and contrast settings don’t adjust brightness and contrast, and most of the fancier-sounding image quality controls don’t do anything except possibly degrade the image. Also, motion blur in live video is largely imaginary, which is good because advertised response times are highly exaggerated. And hey, that impressive “dynamic contrast ratio” the manufacturer is crowing about? Most of the extra contrasty goodness happens when there’s no image on the screen.

    Is the world of HDTV marketing really this bad? Raymond Soneira says it is. He’s the founder of DisplayMate Technologies Corp, an industry-leading display calibration company, and he’s just written a geeky and eye-opening article about the reality of HDTV display technology in Maximum PC magazine.

    According to Soneira, deciding on an HDTV based on manufacturer specs is sort of like buying a digital camera based on megapixel specs–you’re relying on a lot of technical-sounding nonsense that won’t guarantee a better product.

    All of the manufacturer specifications that consumers use to decide on which model to buy are being exaggerated by tremendous factors – some exceeding 1000 (thousand!) percent. More than snow balling… it’s an accelerating runaway train that has to be stopped.

    Competition between display and HDTV manufacturers has gotten so brutal that marketing gimmicks and misleading/fraudulent specs that take advantage of most consumer’s lack of technical knowledge and understanding is playing a large role in driving sales and market share.

    Soneira says it’s become a contest where the “biggest liar wins,” with manufacturers and their marketing departments one-upping each other on imaginary product features that end up making it harder for consumers to buy wisely.

    His solution: create an industry standard that everyone agrees to follow. However, getting manufacturers to agree to that sort of self-policing model has proven difficult.

    It’s both shocking and sad that display specs have been exaggerated to the point of meaninglessness. And you’re not the only one who suffers—innovative manufacturers that develop new and better display technologies can’t trumpet their hard work with superior performance specs. Instead, they’re forced to play the game or lose significant business.

    The National Institute of Standards and Technology (NIST) could help, but its display division was terminated in 2009. The only realistic solution that I see is the creation of an organization (that is completely independent of the manufacturers) to develop a set of straightforward, objective standards for measuring and advertising display specs.

    […]

    I proposed this back in 2003, but it went nowhere because too many manufacturers resisted the idea. But it’s high time for this solution to finally be implemented—or just imposed. It’s in everyone’s interest except for the subset of manufacturers that can only compete using fraud.

    “Display Myths Shattered: How Monitor & HDTV Companies Cook Their Specs” [Maximum PC]

  • Q&A for this week’s Autoblog Podcast [FIXED]

    We’ll be recording the latest episode of the Autoblog Podcast this evening and, like most episodes, we’ll be answering questions from listeners. If you’d like to ask a question about any of our discussion topics, just use the Q&A box below to submit them. Likewise, anyone can vote for the best questions so we know which are the most popular.

    Discussion Topics for Autoblog Podcast Episode #179


    Subscribe to
    the Autoblog Podacast and hear your questions asked:
    [iTunes] Subscribe to the Autoblog Podcast in iTunes
    [RSS] Add the Autoblog Podcast feed to your RSS aggregator

    UPDATE: The Q&A module has been fixed and is now accepting questions. Ask away!

    Q&A for this week’s Autoblog Podcast [FIXED] originally appeared on Autoblog on Mon, 24 May 2010 15:45:00 EST. Please see our terms for use of feeds.

    Permalink | Email this | Comments

  • FHA Out-Guarantees Fannie and Freddie Combined

    The government isn’t really curtailing the activity of the government-sponsored entities Fannie Mae and Freddie Mac — it’s just pushing business over to the Federal Housing Administration instead. In fact, the FHA was the guarantor of choice in the first-quarter. It backed more loans than Fannie and Freddie combined. And the broken system sputters on.

    Bloomberg reports, quoting FHA head David Stevens:

    “This is a market purely on life support, sustained by the federal government,” he said at the Mortgage Bankers Association conference. “Having FHA do this much volume is a sign of a very sick system.”

    The FHA, which backs loans with down payments as low as 3.5 percent, insured $52.5 billion of home-purchase mortgages in the first quarter, compared with $46 billion of purchases of the debt by Fannie Mae and Freddie Mac, according to data compiled by Washington-based Potomac Partners.

    The FHA and Fannie Mae and Freddie Mac, which regulators seized in 2008, have been financing more than 90 percent of U.S. home lending after a retreat by banks and the collapse of the market for mortgage bonds without government-backed guarantees.

    Put another way, the FHA has become the savior for the mortgage market since the housing bubble’s pop. Without it, far fewer people would have obtained home loans. The risk premium has been too great for banks or investors to stand behind these mortgages without a government back-stop. Luckily, the government has a seemingly unlimited tolerance for risk. After all, taxpayers have deep pockets — or at least, China has a strong appetite for Treasuries.

    But in all seriousness, this data shows the need for housing policy reform. The FHA was never meant play the role it has taken on. While it would have been frustrating in the short-term if consumers didn’t have access to funding in order to secure as many mortgages over the past few years, the precedent this potentially sets in the long-term for the government’s permanence in the mortgage business is arguably more dangerous.

    And what’s worse: there’s no end in sight. With the economy picking up, the government is backing more loans recently, not fewer. The Wall Street Journal reported a few weeks ago:

    Government-related entities backed 96.5% of all home loans during the first quarter, up from 90% in 2009, according to Inside Mortgage Finance.

    Yet the power in Washington still stubbornly refuses to solve the GSE problem, despite the evidence that it’s getting worse instead of better. In several thousand pages of financial regulation bills approved by Congress, there isn’t a single provision that would reform the government’s role in the mortgage industry.





    Email this Article
    Add to digg
    Add to Reddit
    Add to Twitter
    Add to del.icio.us
    Add to StumbleUpon
    Add to Facebook



  • Can West Virginia afford to get off coal — or can it afford not to?

    (Photo: savecoalrivermountain.org)

    (Photo: savecoalrivermountain.org)

    By Tom Kessler
    Green Right Now

    Coal is deeply woven into every aspect of West Virgina and its people. The fossil fuel is found in 53 of the state’s 55 counties and underground mines produced 97 million tons of coal in 2008. West Virginia’s coal industry provides about 30,000 jobs, including miners, mine contractors, coal preparation plant employees and mine supply companies, according to the state’s Office of Miners’ Health, Safety and Training.

    But amid coal mining accidents and concerns about coal-related pollution, a more vigilant Environmental Protection Agency under the Obama Administration is beginning to put the brakes on the state’s history of widespread mining by slowing the permitting process.

    Those actions have drawn the attention or pro-mining politicians. Last week, the Senate Environment and Public Works Committee released a report outlining the adverse economic and employment impacts of the EPA’s “inability to approve or set discernable (sic) standards” for the approval of coal mining permits in Appalachia. The minority staff report was released by Sen. Jim Inhofe (R-OK), a ranking member of the committee and a leading opponent of global warming legislation.

    The report accuses the Obama Administration of “using the Clean Water Act Section 404 permitting process to dismantle the coal industry in the Appalachian region” and predicts that West Virginia, as well as Kentucky, Ohio, Pennsylvania, Tennessee, Virginia and Alabama, will be hard hit by this “virtual moratorium on permitting.”

    The Federation for American Coal, Energy and Security (FACES of Coal) has jumped into the debate to share its concerns.

    “The EPA is making clear its intentions to destroy jobs and economic security in West Virginia and throughout Appalachia,” Bryan Brown, state coordinator of West Virginia FACES of Coal, said in a statement. “The Senate report acknowledges the job destruction and economic peril EPA’s actions are having on this region. We urge our elected leaders in Washington to continue their efforts to secure coal jobs and our economic future.”

    The Senate report, gathered from information from the EPA along with interviews with permit applicants, found that the 190 coal mining operations tied up at EPA are expected to produce over 2 billion tons of coal (throughout the life of operations) and support roughly 17,806 new and existing jobs as well as 81 small businesses.

    “In this region, coal mining jobs are some of the best paying jobs available. These jobs are critical to the survival of small businesses, and they support other industries and jobs across the state,” Brown said. “The report also verifies that EPA’s actions will cost the state of West Virginia $217 million annually in tax revenue. That is a state budget nightmare.”

    But Environment Defense Fund and other groups say the pro-coal forces have it all wrong. In its own fact sheet, EDF concludes that “a nationwide cap on greenhouse gas emissions would jumpstart a new energy economy in West Virginia and accelerate the growth of good-paying, clean jobs.”

    EDF notes that clean energy “already provides thousands of West Virginia workers with good jobs during hard times.” And Pew Charitable Trusts reports that as of 2007, 332 businesses had generated more than 3,000 West Virginia jobs in the clean energy economy. EDF says that venture capitalists have invested nearly $6 million in West Virginia’s clean energy businesses.

    University of Massachusetts researchers concluded that the American Clean Energy and Security Act, coupled with the clean energy provisions passed in the ARRA stimulus package that Congress passed in February 2009, will drive $150 billion of investment in clean energy nationwide. This investment will create more than 10,000 jobs for West Virginia’s workers.

    EDF sees a huge upside to West Virginia in a clean energy world, noting that the Department of Energy has identified significant, untapped opportunities for key industries in the state to prosper under a clean energy economy. DOE identified at least 1,162 ways for small and medium-sized industrial plants in West Virginia to earn savings from efficiency, with an average payback of only 1.6 years. Only 56% of these opportunities have been implemented.

    A June 2009 report from the National Oceanic and Atmospheric Administration says inaction on global warming will cause significant harm to the Appalachian region. Warming temperatures are predicted to increase the spread of tick-borne diseases such as Lyme disease. Early snow melt will lead to winter flooding, and high temperatures will induce summer drought.

    All of this would be devastating to West Virginia, EDF says, reporting that:

    • West Virginia’s 23,000 farms—which produce over $590 million annually for the state — will lose ground to droughts and agricultural pests. Heat stress will reduce milk output from dairy farms, according to the U.S. Climate Change Science Program.
    • West Virginia’s forest industry—worth about $4 billion annually8—relies on tree species vulnerable to climate change. West Virginia’s valuable spruce forests could disappear, an EPA report says.
    • National Wildlife Federation predicts  that global warming will damage the 29,604 jobs provided by West Virginia’s $1.2 billion hunting, wildlife watching, and angling industries.

    All of this points to one thing that both clean energy advocates and pro-coal forces could agree on: West Virginia will be one of the major crossroads where the future direction of the energy industry is settled.

    Copyright © 2010 Green Right Now | Distributed by GRN Network